Tipp of the Week: Loan consolidation scam

Hello Tipp City! Marc the Cop here,

Susan and I were running errands the other night when her cell phone started ringing. Of course, it was the ole, “Who the heck is calling this late?” Now, mind you, we stay off the phones after five, or at least we try to.

She looks at the number, and it's from United Lending. I say, “Answer it; this should be fun.” The female voice on the other end of the phone stated she was Heather from United Lending and wanted to verify the information on her credit application.

Susan replied, “Look, Heather, I didn’t apply for (expletive) at your company. Stop calling my phone!” Susan looked at her call history, and so far, that day, there had been six previous calls from that number!

We go to Chick Filet, and as we wait in the drive-through line, we get four more calls!!

She swiped up and blocked the number(s). Those people are relentless. A quick Google search showed that the company was a fraud.

A new phone scam is making the rounds, with fraudsters posing as loan consolidators to trick unsuspecting individuals into divulging sensitive personal and financial information. These scammers prey on those struggling with debt, offering false promises of lower interest rates, reduced monthly payments, and even complete debt forgiveness. However, their real goal is to steal personal details, which they can use for identity theft or fraudulent financial activities.

How the Scam Works

The scam typically starts with a phone call from someone claiming to represent a legitimate debt consolidation company. They may even spoof their caller ID to make it appear that they are calling from a well-known financial institution or government agency. The caller often sounds professional, knowledgeable, and urgent, pressuring the victim to act quickly to “take advantage of a limited time offer.”

Once they have gained the target’s trust, they will ask for personal details such as Social Security numbers, bank account information, credit card numbers, or login credentials. Some scammers may request upfront fees for “processing” or “administrative” costs, which they claim are necessary to begin the debt consolidation. Legitimate debt relief companies do not require immediate payments before providing services.

Red Flags to Watch For

1. Unsolicited Calls: Be cautious if you receive an unexpected call about debt consolidation, especially if you have never inquired about such services.

2. High-Pressure Tactics: Scammers often create a sense of urgency, insisting that you must act immediately to secure a deal.

3. Requests for Personal Information–A legitimate company will not ask for sensitive details like your Social Security number or bank credentials over the phone.

4. Upfront Fees: Be wary of any company that demands an advance payment before providing services.

5. Lack of Credentials: Scammers often fail to provide verifiable company names, website details, or legitimate business licenses.

How to Protect Yourself

• Verify the Company: Research any debt consolidation service before engaging with it. If you have complaints, check with the Better Business Bureau (BBB) or Federal Trade Commission (FTC).

• Avoid Sharing Personal Information: Never provide financial details to unsolicited callers.

• Hang up and Call Back: If you’re unsure, hang up and contact the company directly using a verified phone number.

• Report the Scam: If you receive a suspicious call, report it to the FTC or your state’s consumer protection agency.

By staying vigilant, you can avoid falling victim to these deceptive tactics and protect your financial well-being.

Remember the 9 PM routine! The Nine PM routine is a nightly reminder to residents to remove valuables from their vehicles, lock their vehicle doors, lock the doors to their residences, turn on exterior lights, and activate all alarms and security systems.

That is all for this week! Please be safe and care for one another.

I'll see you in church on Sunday!

Sgt. Marc Basye (Ret.)

Do you have a suggestion for the Tipp of the Week? Your input is valuable to us. You can email me at Marcthecop@tippgazette.com!

The opinions and statements in this column are those of the author, who is not affiliated with any law enforcement agency. This column is for entertainment purposes only. Persons referred to may be fictional for comedic purposes only.